Business Taxes Law Guide – Revision 2015

Sales and Use Tax Annotations

150.0000 BUILDINGS AND OTHER PROPERTY AFFIXED TO REALTY—Regulation 1596

Annotation 150.0400

150.0400 Outdoor Advertising—Cutouts. "Cutouts" are plywood embellishments attached to billboards to increase the advertising space. These consist of letters or forms on which are painted pictorial representations, are moved from one billboard to another, and junked at the end of a particular advertising campaign. If the billboard owner passes title to or the right of possession of the cutouts to the advertiser, tax applies to the charges for materials contained in the cutouts together with the charges for fabrication labor in manufacturing them. If title to or the right of possession of the cutouts does not pass to the advertiser, then the billboard owner is the consumer of the materials contained in the cutouts. 7/1/59; 7/11/90.